The $700 billion bailout has passed, and it could bring much-needed relief to the credit markets, but it’s not all going to be better right away.

While the world’s financial leaders scramble for ways to stop the bleeding, the people who manage the shrinking investments of everyday people are working overtime.

Erika Puzik, senior financial adviser at Erika Puzik & Associates in Los Angeles, says the volatility of the market has left people shaken.

“Absolutely,” she said.

But she says investors should weigh trouble in the short term against the larger picture.

“It’s all about long-term investing and your time horizon.”

In addition to offering advice, planners are also doing their best to calm their clients’ fears.

“We do a lot of hand-holding and counseling during this time,” said David Kirkland, compliance manager for New York Life. “It’s part of what we do, like a doctor at a patient’s bedside.”

There is great fear as people watch their retirement savings shrivel and wonder if they’ll ever be able to retire.

It’s even worse for those who have retired and still have their savings tied to the market.

Kirkland said it is his job to let people know where they stand, what is at stake and what to do next.

For clients who have their money in fixed accounts, he said there is no reason for concern, Kirkland said.

For investors tied to the stock market, it is time to take a deep breath (or two) and consider the options with a financial planner.

“We obviously have some concern,” Kirkland said. “I know there are a lot of questions. I think we all have questions.”

In general, it is not a good idea to sell during a down cycle, he said.

“You have to have faith in the history of the market,” Kirkland said.

A little bit of panic – and a lot of concern – is understandable, said Greg Wallace, a partner with Core Financial Advisors in San Bernardino.

After months of bad economic news, as the subprime mortgage meltdown spread through the economy, the stock market’s knees buckled.

“It was beyond close,” Wallace said.

Experts say it still is.

His job is to stay calm and give clients their options. “We try to prepare them for the possibilities,” Wallace said. “We’re getting a generally good response.”

The market woes of 1979 and 1987 were worse, although it is hard to compare those years to the current crisis because the U.S. is part of a world economy as never before, he said.

“This (crisis) produced a lot more uncertainty,” Wallace said.

For those who can’t bear the uncertainty, he said, it may be time to put their money into the bank.

History tells Wallace that the economy and the market are resilient. A down market has also traditionally been a time to buy – not sell.

“If you believe in our system of capitalism, you’ve got to stay in if you’ve got good stock,” he said. “Good stock will always make a comeback.”

If you have invested in higher-risk, higher-yield stocks, it may be time to readjust your portfolio.

“It’s time to stick to it, and you’ll do better in the long run.”

Others, especially those too close to retirement to wait for their portfolio to rebound, are turning to investments that earn less but are guaranteed not to lose money, said Jon Scopp, a broker at Ken Scopp & Associates in Los Angeles.

Scopp says more people are turning to fixed-rate insurance policies, a guaranteed annuity that protects their money from the swings of the market.

“I’m working with people to find a safe haven,” he said. “Lots of people are telling me they’re really feeling it.

“I’m talking to people who happen to be down (in the market) and what’s cool about annuities, they basically protect you from the down.”

And unfortunately, he says it will be up and down for some time to come.

“I don’t think six months from now we’ll be able to say we’re OK,” he said.

Larry Sharp, CEO of Arrowhead Credit Union in the Inland Empire, says people are understandably worried, and can’t help but wonder what’s next.

“One of the things that troubles people most is uncertainty,” he said. “People really don’t understand what’s going on in the market.

“We don’t know when we’re going to have that stability, if you will, and I think people want stability.”

Join the Conversation

We invite you to use our commenting platform to engage in insightful conversations about issues in our community. Although we do not pre-screen comments, we reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable to us, and to disclose any information necessary to satisfy the law, regulation, or government request. We might permanently block any user who abuses these conditions.

If you see comments that you find offensive, please use the “Flag as Inappropriate” feature by hovering over the right side of the post, and pulling down on the arrow that appears. Or, contact our editors by emailing moderator@scng.com.